Late Night Levy

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Overview

We are consulting on the introduction of a Late Night Levy, which means businesses that sell alcohol after midnight will have to pay for some of the extra expense of cleaning the streets and keeping people safe.

Southwark has a vibrant night‐time economy that draws people from all over London and beyond and is a major part of the lively and inclusive atmosphere of the borough. We are committed to supporting this and working with businesses to ensure Southwark is a great place to go out.

However, as we all know, the late night economy can also bring crime, antisocial behaviour, litter and people in need of support. The council currently funds a night economy team of police and council officers who deal with many of these issues. This costs us around £280,000 a year.

We are proposing to introduce a Late Night Levy, to raise money from those businesses licensed to sell alcohol between midnight and 6am. We think this is the fairest way to fund the night economy team, with additional money going towards other initiatives to support a safer night time environment.

The Levy would be a small charge on those businesses licensed to sell alcohol after midnight. We are considering reductions for some small businesses, and/or for businesses in Business Improvement Districts where they are already subject to an additional levy due to their location. We are also considering offering the opportunity for businesses to alter their licence conditions in order to avoid the Levy. The maximum potential revenue would be £419,000, however, this would be less if discounts are given.

The net revenue, after deducting the cost of collection and administration, must currently be divided with at least 70% going to the Metropolitan Police; this does mean however, that the money can be spent anywhere within the Metropolitan area. Following amended Home Office guidance, Licensing Authorities are recommended to use existing partnership arrangements with the Police to apply for 100% of the revenue raised to tackle alcohol-related crime and disorder in the administrative area in which the levy was raised; this is the intention of Southwark – that all monies raised in the Borough, be spent in the Borough. An agreement has already been made with the Borough Commander for Southwark that 100% of the monies be retained. The Mayor’s Office for Police and Crime (MOPAC) must also agree to this. We are therefore seeking permission from MOPAC to do this; which forms part of this consultation, see Question 6.

Why We Are Consulting

The Late Night Levy would be an important change to our local licensing rules. Other London boroughs, such as Camden and Tower Hamlets, have already applied a Levy and we think it is appropriate for a borough such as Southwark with a lively late night economy. We want to know that we have got the details right and, if it is taken forward, ensure it works for local people and businesses.

Due to circumstances beyond our control, the public meeting scheduled for 19 March 2019 has been cancelled. We apologise for any inconvenience caused, however, please continue to complete the online survey below. Your comments are important to us.

What Happens Next

The Council is required to consult on the potential implementation of a Late Night Levy under the Police Reform and Social Responsibility Act 2011, Chapter 2 of Part 2 the Late Night Levy (Application and Administration) Regulations 2012 and The Late Night Levy (Expenses, Exemptions and Reductions) Regulations 2012.

The information received will only be used for the purposes of this consultation and Licensing Team.

Any personal data will be destroyed one year after the consultation is completed.

Anonymised responses will be used in a published public document to report to the Licensing Committee and full Council Assembly